Derivatives

For further information regarding the fair value measurement of derivative instruments, see Note 11. All of our interest rate derivatives are subject to enforceable master netting arrangements or similar agreements under which we may report net amounts. Netting is assessed by counterparty, and as of March 31, 2014 and December 31, 2013, there were no offsetting amounts. Positions by contract were all either assets or liabilities. The following tables present the gross fair values of derivative instruments, excluding cash collateral, and the reported net amounts along with where they appear on the consolidated balance sheets as of March 31, 2014 and December 31, 2013.



	March 31, 2014
(In millions)	Asset		Liability		Net Asset		Balance Sheet Location
Fair Value Hedges
Interest rate	$	7	$	—	$	7	Other noncurrent assets
Foreign currency	10		—		10		Other current assets
Total Designated Hedges	$	17	$	—	$	17



	March 31, 2014
(In millions)	Asset		Liability		Net Liability		Balance Sheet Location
Fair Value Hedges
Foreign currency	$	—	$	2	$	2	Other current liabilities
Total Designated Hedges	$	—	$	2	$	2



	December 31, 2013
(In millions)	Asset		Liability		Net Asset		Balance Sheet Location
Fair Value Hedges
Interest rate	$	8	$	—	$	8	Other noncurrent assets
Foreign currency	2		—		2		Other current assets
Total Designated Hedges	$	10	$	—	$	10

	December 31, 2013
(In millions)	Asset		Liability		Net Liability		Balance Sheet Location
Fair Value Hedges
Foreign currency	$	—	$	4	$	4	Other current liabilities
Total Designated Hedges	$	—	$	4	$	4

Derivatives Designated as Fair Value Hedges

The following table presents by maturity date, information about our interest rate swap agreements as of March 31, 2014 and December 31, 2013, including the weighted average, London Interbank Offer Rate (“LIBOR”)-based, floating rate.



	Aggregate Notional		March 31, 2014		December 31, 2013
	Amount		Weighted Average, LIBOR-Based,
Maturity Dates	(in millions)		Floating Rate
October 1, 2017	$	600	4.64	%	4.65	%
March 15, 2018	$	300	4.49	%	4.50	%

As of March 31, 2014 and December 31, 2013, our foreign currency forwards had an aggregate notional amount of 4,261 million and 2,387 million Norwegian Kroner at weighted average forward rates of 6.069 and 6.060. These forwards hedge our current Norwegian tax liability and those outstanding at March 31, 2014 have settlement dates through August 2014.

The pretax effect of derivative instruments designated as hedges of fair value in our consolidated statements of income are summarized in the table below. There is no ineffectiveness related to the fair value hedges.



		Gain (Loss)
		Three Months Ended March 31,
(In millions)	Income Statement Location	2014			2013
Derivative
Interest rate	Net interest and other	$	(1	)	$	(3	)
Foreign currency	Provision for income taxes	$	3		$	(25	)
Hedged Item
Long-term debt	Net interest and other	$	1		$	3
Accrued taxes	Provision for income taxes	$	(3	)	$	25

Derivatives not Designated as Hedges

The impact of all commodity derivative instruments not designated as hedges appears in sales and other operating revenues in our consolidated statements of income and was a net loss of $55 million in the first quarter of 2013.